Following the complete removal of fuel subsidy in 2023 by the Nigerian government, the effects are still subject of debate to both proponents and opponents of the policy. While its proponents believe it had saved huge revenue and blocked leakages in government expenditures thereby saving funds for developmental project, its opponents believe it has worsened the socioeconomic conditions of the populace through wide spread poverty and inequality in the society. The study focuses on a critical analysis of the effect of fuel subsidy removal on poverty alleviation and bridging the inequality in Nigeria. The work adopted the documentary and qualitative research design. Also, secondary sources of data were explored to generate data needed for the study and content analysis method was used to analyze the derived data. The study findings reveal that the removal of subsidy have strong effects on societal poverty and inequality in Nigeria and thus far the impact of palliative measure put in place are yet to meaningfully change the status quo. The study therefore recommends the need for the government to ensure its policy formulation and policy implementation process are well guided to address the challenges posed by the removal of fuel subsidy.